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79R9556 AJA-F
By: Flores H.B. No. 2526
A BILL TO BE ENTITLED
AN ACT
relating to the promotional activities of certain alcoholic
beverage license or permit holders.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle A, Title 3, Alcoholic Beverage Code, is
amended by adding Chapter 54 to read as follows:
CHAPTER 54. PROMOTIONAL PERMIT
Sec. 54.001. AUTHORIZED ACTIVITIES. The holder of a
promotional permit may, on behalf of a distiller, brewer,
rectifier, wholesaler, class B wholesaler, winery, or wine bottler
with whom the promotional permit holder has entered into a contract
for the purposes of this chapter:
(1) engage in activities to promote and enhance the
sale of an alcoholic beverage in this state, including activities
that take place on the premises of the holder of a permit or license
under this code; and
(2) assist a permit or license holder in the sale or
service of alcoholic beverages on the premises of a permit or
license holder.
Sec. 54.002. FEE. (a) The annual state fee for a
promotional permit is $300.
(b) A local fee may not be charged for the application or
issuance of a promotional permit.
Sec. 54.003. SELLER TRAINING PROGRAM REQUIRED. (a) The
holder of a promotional permit shall ensure that each of the permit
holder's employees who conduct activities authorized under this
chapter attends a commission-approved seller training program.
(b) The holder of a promotional permit shall maintain
adequate records establishing that the employees of the permit
holder have attended a commission–approved seller training
program.
Sec. 54.004. PROHIBITED ACTIVITIES. The holder of a
promotional permit may not:
(1) sell or offer to sell alcoholic beverages to a
person under the age of 21; or
(2) hold an interest, directly or indirectly, in a
permit or license issued under this code other than a contract to
promote and enhance the sale of alcoholic beverages as authorized
by this chapter.
SECTION 2. Section 102.02, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 102.02. PROVIDING SAMPLES. Notwithstanding any other
provision of this code, the holder of a wholesaler's or nonresident
seller's permit or the holder's agent, representative, or employee
may furnish or give a sample of liquor to a holder of a permit
authorizing the sale of that category of alcoholic beverage at
retail if the retail permittee has not previously purchased that
brand from that wholesaler or nonresident seller [permittee]. The
wholesaler or nonresident seller may give the retail permittee not
more than 750 milliliters of any brand of distilled spirits, not
more than three liters of any brand of wine in that package, and not
more than one six-pack of any other alcoholic beverage so packaged.
The retail permittee or the permittee's agent, servant, or employee
may sample the product on the licensed premises only if the
wholesaler, the nonresident seller, or the wholesaler's or
nonresident seller's agent, servant, or employee is present.
SECTION 3. Section 102.07, Alcoholic Beverage Code, is
amended by amending Subsections (a), (d), and (e) and adding
Subsection (h) to read as follows:
(a) Except as provided in Subsections (b), (d), [and] (g),
and (h), no person who owns or has an interest in the business of a
distiller, brewer, rectifier, wholesaler, class B wholesaler,
winery, or wine bottler, nor the agent, servant, or employee of such
a person, may:
(1) own or have a direct or indirect interest in the
business, premises, equipment, or fixtures of a retailer;
(2) furnish, give, or lend any money, service, or
thing of value to a retailer;
(3) guarantee a financial obligation of a retailer;
(4) make or offer to enter an agreement, condition, or
system which will in effect amount to the shipment and delivery of
alcoholic beverages on consignment;
(5) furnish, give, rent, lend, or sell to a retail
dealer any equipment, fixtures, or supplies to be used in selling or
dispensing alcoholic beverages, except that alcoholic beverages
may be packaged in combination with other items if the package is
designed to be delivered intact to the ultimate consumer and the
additional items have no value or benefit to the retailer other than
that of having the potential of attracting purchases and promoting
sales;
(6) pay or make an allowance to a retailer for a
special advertising or distribution service;
(7) allow an excessive discount to a retailer; or
(8) offer a prize, premium, gift, or similar
inducement to a retailer or to the agent, servant, or employee of a
retailer.
(d) A permittee covered under Subsection (a) [of this
section] may offer prizes, premiums, or gifts to a consumer subject
to the provisions of this code. Except as provided by Subsection
(h), the [if the offer is national in scope and legally offered and
conducted in 30 states or more. The] use of rebates or coupons
redeemable by the public for the purchase of alcoholic beverages is
prohibited. The holder of a winery permit may furnish to a retailer
without cost recipes, recipe books, book matches, cocktail napkins,
or other advertising items showing the name of the winery
furnishing the items or the brand name of the product advertised if
the individual cost of the items does not exceed $1.
(e) A permittee covered under Subsection (a) [of this
section] may conduct a sweepstakes promotion if no [the promotion
is part of a nationally conducted promotional activity legally
offered and conducted at the same time in 30 or more states. A]
purchase or entry fee is [may not be] required of any person to
enter [a sweepstakes event authorized under this subsection]. A
person affiliated with the alcoholic beverage industry may not
receive a prize from a sweepstakes promotion.
(h) Notwithstanding any other provision of this code, a
permittee covered by Subsection (a) may offer a rebate or refund on
a product sold or offered for sale by the permittee if the rebate or
refund is accomplished by mail or over the Internet. The commission
may limit the amount of rebate or refund that may be offered,
consistent with industry practices.
SECTION 4. Section 108.03, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 108.03. REGULATION OF PROMOTIONAL ACTIVITIES. (a)
The commission shall adopt rules permitting and regulating the use
of business cards, menu cards, stationery, service vehicles and
equipment, and delivery vehicles and equipment that bear alcoholic
beverage advertising. The commission shall also adopt rules
permitting and regulating the use of insignia advertising beer,
distilled spirits, or wine by brand name on caps, regalia, or
uniforms worn by employees of manufacturers, distributors,
distillers, or wineries or by participants in a game, sport,
athletic contest, or revue if the participants are sponsored by a
manufacturer, distributor, distiller, or winery.
(b) Subject to this chapter and commission rules, a permit
or license holder authorized to manufacture, rectify, bottle, or
wholesale alcoholic beverages may:
(1) advertise a promotional or sponsorship event to
consumers; and
(2) include in the advertisement the name and address
of a retailer at which the event is held if:
(A) the advertisement does not also contain the
retail price of a product; and
(B) the listing of the event location is the only
reference to the retailer in the advertisement and is relatively
inconspicuous in relation to the advertisement as a whole.
(c) Pictures or illustrations of retail establishments or
laudatory references to retailers in manufacturers' or wholesalers'
advertisements are not authorized by Subsection (b).
SECTION 5. Section 108.061, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 108.061. CERTAIN [NATIONALLY CONDUCTED] SWEEPSTAKES
PROMOTIONS AUTHORIZED. Notwithstanding the prohibition against
prizes given to a consumer in Section 108.06 [of this code] and
subject to the rules of the commission, a manufacturer or
nonresident manufacturer may offer a prize to a consumer if the
offer is a part of a [nationally conducted] promotional sweepstakes
activity legally offered and no [conducted at the same time period
in 30 or more states. A] purchase or entry fee is [may not be]
required of any person to enter [in a sweepstakes authorized under
this section]. A person affiliated with the alcoholic beverage
industry may not receive a prize from a sweepstakes promotion.
SECTION 6. Sections 36.06 and 37.13, Alcoholic Beverage
Code, are repealed.
SECTION 7. This Act takes effect September 1, 2005.